Australia markets closed

ASX high on ‘cake and ice cream’

Here's the latest market news. Source: Getty

The benchmark S&P/ASX200 (^AXJO) has finished up 4.31 per cent, after trading in the green all day.

The broader All Ordinaries index (^AORD) also finished higher, up 3.91 per cent at close.

What happened this morning?

The benchmark S&P/ASX200 (^AXJO) gained 2.92 per cent at 10.15 AEST, buoyed by Wall Street’s enthusiasm over the Federal Reserve’s plan to buy corporate bonds.

The broader All Ordinaries index (^AORD) also gained 2.93 per cent.

The Reserve Bank's June board meeting minutes will be released on Tuesday, with economists keeping an eye out for comments about the Aussie dollar’s recent surge.

Energy stocks saw the greatest benefit, higher by 4.16 per cent, information technology saw a 3.72 per cent jump and financials rose by 3.52 per cent.

Telecommunications and consumer discretionaries also enjoyed gains of more than 3.0 per cent.

One Australian dollar was buying 69.59 US cents at 10.14 AEST. 

What happened in the US?

Wall Street closed higher following the US Federal Reserve’s announcement that it would purchase individual corporate bonds, boosting investor confidence.

All three major US stock indexes reversed losses in afternoon trading following the Fed’s decision. 

"No doubt the market liked it: Who doesn't like more cake and ice cream?" Robert Pavlik, chief investment strategist, senior portfolio manager at SlateStone Wealth LLC in New York told AAP.

The Dow Jones Industrial Average rose 157.62 points, or 0.62 per cent, to 25,763.16, the S&P 500 gained 25.28 points, or 0.83 per cent, to 3,066.59 and the Nasdaq Composite added 137.22 points, or 1.43 per cent, to 9,726.02.

With AAP.

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